When you stop and really look at how life is in the United States you are forced to realize some harsh truths. ALICE is one of those truths. What is ALICE?
ALICE is an acronym for Asset Limited, Income Constrained, Employed, and represents the growing number of families who are unable to afford the basics of housing, child care, food, transportation, health care, and technology. These workers often struggle to keep their own households from financial ruin, while keeping our local communities running.
All too often our political leaders want us to believe that the stock market is the factor that tells us how well our economy is doing. The vast majority of stocks are owned by the richest one percent. Big business and the rich are cleaning up. The rest of us are wondering when they will have enough money to allow some to trickle down to us. You know in your heart the answer is never. The unemployment rate is consistently under 5%. It does not accurately reflect what is actually happening. People working multiple jobs who are still living the ALICE reality. Federal minimum wage is $7.25 per hour. The minimum wage in Georgia is $5.15 per hour. With some limited exceptions employers in Georgia are required to pay the federal minimum wage. The current administration wants to do away with the federal minimum wage and return it to the states. Georgia is a good example of why this is a bad idea. This chart shows what costs were in 2022 and the hourly wage it would take to exceed the ALICE level of income. We must make changes and do better. There is no rationale country who would tolerate so few having so much while so many have so little and struggle so much.
The Cost of Basics Outpaces Wages
The Household Survival Budget reflects the minimum cost to live and work in the current economy and includes housing, child care, food, transportation, health care, technology, and taxes. It does not include savings for emergencies or future goals like college or retirement. In 2022, household costs in every county in Georgia were well above the Federal Poverty Level of $13,590 for a single adult and $27,750 for a family of four.
Household Survival Budget, Georgia, 2022
Monthly Costs and Credits | Single Adult | One Adult, One Child | One Adult, One In Child Care | Two Adults | Two Adults Two Children | Two Adults, Two In Child Care | Single Adult 65+ | Two Adults 65+ |
Housing - Rent | $607 | $543 | $543 | $543 | $650 | $650 | $607 | $543 |
Housing - Utilities | $163 | $258 | $258 | $258 | $310 | $310 | $163 | $258 |
Child Care | $0 | $178 | $476 | $0 | $357 | $1,016 | $0 | $0 |
Food | $451 | $766 | $687 | $828 | $1,392 | $1,230 | $417 | $764 |
Transportation | $412 | $545 | $545 | $652 | $1,062 | $1,062 | $348 | $524 |
Health Care | $185 | $458 | $458 | $458 | $796 | $796 | $529 | $1,057 |
Technology | $86 | $86 | $86 | $116 | $116 | $116 | $86 | $116 |
Miscellaneous | $190 | $283 | $305 | $286 | $468 | $518 | $215 | $326 |
Tax Payments | $354 | $713 | $775 | $478 | $976 | $1,115 | $422 | $735 |
Tax Credits | $0 | ($212) | ($232) | $0 | ($425) | ($463) | $0 | $0 |
Monthly Total | $2,448 | $3,618 | $3,901 | $3,619 | $5,702 | $6,350 | $2,787 | $4,323 |
ANNUAL TOTAL | $29,376 | $43,416 | $46,812 | $43,428 | $68,424 | $76,200 | $33,444 | $51,876 |
Hourly Wage | $14.69 | $21.71 | $23.41 | $21.71 | $34.21 | $38.10 | $16.72 | $25.94 |